Is it me, or has the world become much more complicated recently? The NBA has suspended games indefinitely. The NCAA “March Madness” basketball tournament will be played in empty stadiums. Princess Cruises just announced they are cancelling cruises for the next 60 days. Europeans will not be allowed to fly to the United States for […]
In February, job creation beat expectations, and there is no sign of a virus effect even in the details. Net job creation in February was a surprising 273,000. In addition, December was revised up by 37,000 and January up by 48,000. Rising employment and wages are the main contributors to GDP growth because personal consumption […]
February’s employment report showed a turnaround in manufacturing, while construction continued to boom. The net increase in employed persons was 273,000 in February, the same as an upwardly revised result for January. In February, 42,000 jobs were created in construction and 15,000 jobs in manufacturing. The private sector gained 228,000 jobs in February and government […]
In January, total construction continued to boom with a 5.1 percent year-over-year growth rate Total construction is enjoying a remarkable turnaround with positive momentum in all sectors. The January results for total construction spending yielded the best growth rate for 15 months. Growth is being led by state and locally funded work including infrastructure, but […]
Price negotiations have tightened up noticeably as the mills seek to collect the $40 price increase they announced last week. Significantly more of the service center and manufacturing executives responding to Steel Market Update’s questionnaire this week said the mills are holding the line on prices, especially for hot rolled and galvanized. In the hot […]
“Beyond seasonally subdued,” is how Ryerson Holding CEO Eddie Lehner described demand in the fourth quarter of 2019. Ryerson shipped 541,000 tons last quarter, down 6.2 percent year-over-year and 9.5 percent lower than in the third quarter. Revenue decreased 17.1 percent to $961.5 million compared to Q4 2018 and net income was $26.4 million. Average […]
Thomas Gibson, president and CEO of the American Iron and Steel Institute, will retire this fall. A search for his successor begins immediately. Gibson has led AISI since September 2008. Under his leadership, the institute successfully advocated for legislation to strengthen the trade laws against unfair trade practices and level the playing field for steel […]
Earlier today SMU heard the gloomiest economic forecast since the Great Recession of 2008-2009. John Anton, IHS Markit Associate Director Pricing & Purchasing, came roaring right out of the gate with the IHS view on how we should be thinking about the coronavirus in the United States. He told attendees at the FMA Annual Meeting […]
ArcelorMittal has big plans for AM/NS Calvert. Lakshmi Mittal, chairman of ArcelorMittal, hinted at a multi-billion dollar investment in Alabama during a press conference with President Donald Trump in India last week. Mittal thanked Trump for his involvement in the U.S. steel industry, calling the Section 232 tariffs a “big lesson for the rest of […]
The coronavirus has begun to affect business in the United States, according to the latest Federal Reserve “Beige Book.” The economy is moving forward at a modest to moderate pace, but growth is uneven. The virus appears to be negatively impacting travel and tourism in the U.S., which showed only moderate to flat growth in […]
By CRU Chief Economist Jumana Saleheen, from CRU’s Steel Sheet Products Market Outlook Two pieces of news have led us to lower our global forecasts for 2020. First, disruptions caused by the Covid-19 epidemic are expected to lead to a sharp downturn in near-term global growth, followed by a sharp recovery later in the year. […]
In just a few weeks from the first known case, the COVID-19 outbreak has wreaked havoc on the global manufacturing sector. The J.P. Morgan Global Manufacturing PMI posted a steep decline in February, falling to 47.2 from 50.4 in January, its lowest level since May 2009. New orders and production fell at record rates in […]
U.S. manufacturing activity grew only slightly in February, according to the latest Manufacturing ISM Report On Business. The Institute for Supply Management reported that the February PMI decreased 0.8 points to 50.1, just above the no-change mark of 50. The PMI for new orders fell into contraction at 49.8, while production dropped four points to […]
NLMK USA has filed a complaint with the U.S. Court of International Trade alleging that NLMK’s requests for steel slab exclusions from Section 232 of the Trade Expansion Act have been wrongfully denied. The Indiana and Pennsylvania mills use imported steel slab to process into finished products. The 250-255 mm thick slab (nominally “10 inch”) […]
Construction spending increased 1.8 percent to $1.369 trillion in January, according to a new analysis of federal data by the Associated General Contractors of America. “Public spending on infrastructure, along with single-family housing, was exceptionally robust in January,” said Ken Simonson, the association’s chief economist. “While overall economic conditions remain favorable, future construction spending levels […]
U.S. Steel continues to make interesting moves having now purchased the balance of the ownership in USS/Posco (UPI), 49.9 percent of Big River Steel with an option to purchase the balance, the $1 billion+ capital investment in the endless casting, rolling and cogeneration at Mon Valley Works and the $750 billion investment in Gary Works. […]
Gauging how COVID-19 will impact global commerce, specifically the world’s steel industry, is almost as difficult to predict as the spread of the virus itself. CRU analysts will tackle the subject in a new webinar this week. As CRU Senior Analyst Erik Hedborg reports, the news is not all bad. For one, the pace of […]
The Chicago Business Barometer nearly emerged from contraction in February. The manufacturing index, produced by MNI Indicators, gained 6.1 points to post 49.0, the highest level since August 2019. The three-month average for the index edged up to 46.7. Production reached an eight-month high, gaining 8.3 points to register 51.0 after seven straight months below […]
Steel Market Update raised its Flat Rolled Price Momentum Indicator to Neutral yesterday from Lower in anticipation of a price hike believed imminent from the mills. As expected, Nucor and U.S. Steel both announced increases today of $40 per net ton on all new spot orders of hot rolled, cold rolled and galvanized steel, effective […]
Steel Market Update raised its Flat Rolled Price Momentum Indicator to Neutral yesterday from Lower in anticipation of a price hike believed imminent from the mills. As expected, Nucor and U.S. Steel both announced increases today of $40 per net ton on all new spot orders of hot rolled, cold rolled and galvanized steel, effective […]
Steel Market Update is revising our Price Momentum Indicator on flat rolled to Neutral from Lower. Sometimes you need a bit of a prod in order to see things clearly. We’ve had many conversations and reviews of the spot pricing data and came to the conclusion the timing of our move to Lower was incorrect. […]
Durable goods orders edged down 0.2 percent in January as defense orders sharply decreased from their surge in December. Defense capital goods plummeted 39.8 percent after an 87.4 percent increase the previous month, the Census Bureau reported today. Orders for transportation slid 2.2 percent in January after gaining 8.8 percent in December. Excluding the volatile […]
Key Market Indicators show that the improvement in market trends in December and January translated to a jump in the present situation in February. This report is designed to be a big picture summary of data on which we have reported in detail during the month. In it we summarize 36 data streams that describe […]
Written by: John Packard, President & CEO, Steel Market Update Steel prices in general appear to have weakened further for the fifth week, based on Steel Market Update’s canvass of the market over the past two days. Hindsight being 20/20, SMU arguably could have adjusted its Price Momentum Indicator from Neutral to Lower earlier than […]
State Steel and SPS Companies have acquired steel fabricator Kooima Co. Kooima, based in Rock Valley, Iowa, provides steel fabrication solutions to OEMs and other manufacturers, including laser cutting, bending, machining and welding. State Steel, headquartered in Sioux City, operates multiple service centers in Iowa as well as metal recycling operations in four states. Kansas-based […]
Based on the results from the flat rolled and plate steel market trends analysis Steel Market Update conducted this past week, along with new steel price discussions SMU had with steel buyers late last week, we have decided to move our flat rolled (hot rolled, cold rolled, galvanized and Galvalume) price Momentum Indicators to Lower […]
Olympic Steel missed its mark during a challenging year. The company reported net income of $3.9 million for 2019, down from $33.8 million in 2018. Net sales fell 8.3 percent year-over-year to $1.6 billion. Fourth-quarter sales slid 29 percent from a year ago to $320 million. The company posted a net loss of $890,000 in […]
Earlier today I moved our Price Momentum Indicator to Lower from Neutral. I explained my reasoning in an article in tonight’s issue. What happens should one of the steel mills announce a price increase within the next couple of weeks? With scrap poised to move higher, and lead times being decent at most of the […]
Price negotiations with the mills have continued to loosen up as it’s rapidly becoming a buyer’s market. The vast majority of service center and manufacturing executives responding to Steel Market Update’s questionnaire this week said the mills are open to price negotiations on nearly all products to win the orders. In the hot rolled segment, […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments […]